Improved Market Efficiency Via Transmission Switching and Outage Evaluation in System Operations

This chapter investigates the improvement of market efficiency via transmission switching and outage evaluation in system operations. It discusses the background of and challenges in power system operations and reviews the basic dispatch model for market clearing. The chapter describes the state‐of‐the‐art process of outage coordination and a measure of economic evaluation of transmission outages. It explores the concept of optimal transmission switching and the enhancement of the dispatch model to incorporate transmission switching within the context of a security‐constrained economic dispatch algorithm. The chapter proposes a new criterion for selecting candidates for transmission‐line switching based on production cost (PC). It also proposes a new method of identifying a limited set of transmission line candidates for switching that is combined with other selection criteria in order to achieve a better market surplus within a reasonable time frame. The chapter illustrates the effectiveness of the proposed method using a practical large‐scale power system with numerical examples.